Volvo S40 and V50 now road-tax free

Volvo has revised the DRIVe versions of its S40 saloon and V50 estate so that both emit less than 100g/km CO2.

Following the changes, the emissions of both models – which come with a 1-6-litre diesel engine and a stop/start system – have dropped by 5g/km to 99g/km. That means they now match the figures of the existing C30 DRIVe, have average fuel economy of 74.3mpg and meet Euro V emissions regulations.

That won't make any difference to the cars' company car tax rates – the previous models already incurred tax at just 13% – but it will mean that road tax continues to be free after the first year of registration.

What's more, if the Mayor of London goes ahead and approves the proposed changes to the congestion charge system, these cars (along with every car with emissions of less than 100g/km and which meets Euro V regulations) will be exempt from the charge from January 2011. That could save an owner more than £2000 per year.